HANOI, Vietnam – Vietnam’s banking landscape continues to evolve as foreign-owned banks expand their presence and boost their capital, signaling growing confidence in the country’s economic prospects and financial system.
According to the State Bank of Vietnam, the country currently hosts nine wholly foreign-owned banks and two joint venture banks, contributing a combined charter capital of over VND 65 trillion (approximately USD 2.55 billion). These foreign banks operate alongside 35 domestic commercial banks, playing a crucial role in supporting trade, investment, and consumer finance.
South Korea’s Woori Bank Takes the Lead
Leading the foreign banking sector is Woori Bank Vietnam, with a charter capital of VND 12.5 trillion (USD 491 million). Since establishing its Vietnamese headquarters in 2017, Woori has significantly expanded, opening branches in key FDI hubs like Da Nang, Binh Duong, Bac Ninh, and Thai Nguyen—areas heavily populated by Korean businesses.
“Woori Bank’s strategic expansion in both capital and geographic footprint reflects the strong confidence of Korean investors in Vietnam’s stable macroeconomic environment,” commented Sophie Dao, Lawyer and Senior Partner at GBS, a firm specializing in legal and investment consulting. “Their focus on retail banking also supports Vietnam’s goal of increasing financial inclusion.”
Singapore’s UOB and the Longstanding British Presence
Coming in second is UOB Vietnam, the local arm of Singapore’s United Overseas Bank, which raised its charter capital to VND 8 trillion (USD 314 million) in 2023. UOB has been particularly active in supporting cross-border trade and offering tailored financial services to SMEs.
Third is HSBC Vietnam, with capital of VND 7.53 trillion (USD 296 million). HSBC’s relationship with Vietnam dates back to 1870, and it became the first foreign bank to establish a wholly owned subsidiary in 2009. The bank continues to support Vietnam’s green finance and sustainable development agenda.
“The commitment shown by banks like HSBC and UOB reinforces Vietnam’s growing role as a regional financial hub,” Sophie Dao noted. “Their expertise in trade finance and green banking brings much-needed innovation and capital to local businesses.”
Standard Chartered and Other Notable Players
Standard Chartered Vietnam, which began local operations in 1904 and transitioned to a fully owned entity in 2009, now holds VND 6.95 trillion (USD 273 million) in capital. Malaysia’s Public Bank Vietnam ranks fifth with VND 6 trillion, operating 40 branches—the largest network among foreign banks.
Shinhan Bank Vietnam, another key South Korean player, follows closely with VND 5.71 trillion (USD 224 million). The bank solidified its retail banking footprint by acquiring ANZ Vietnam’s consumer banking business in 2017.
Despite its more limited scope today, ANZ Vietnam remains a respected institutional bank with a long history in the country. In 2024, it received approval to raise its charter capital to VND 5 trillion (USD 196 million), affirming its long-term commitment.
Other banks such as CIMB Vietnam (VND 4.01 trillion) and Hong Leong Vietnam (VND 3 trillion) round out the list, focusing on a mix of retail and corporate banking services.
Joint Venture Banks Maintain Strategic Roles
Vietnam is also home to two joint venture banks, such as Indovina Bank (IVB) – a 50:50 partnership between VietinBank and Cathay United Bank (Taiwan), with VND 3.38 trillion in capital and Vietnam-Russia Joint Venture Bank (VRB) – jointly owned by BIDV and VTB (Russia), with VND 3.01 trillion
Both banks maintain niche roles in facilitating bilateral trade and investment cooperation.
Strong Outlook and Legal Support for Expansion
As Vietnam’s economy continues to grow and attract FDI, foreign banks are expected to increase their capital and services to meet the growing needs of international businesses and affluent local clients.
“Vietnam’s banking regulations have become more transparent and investor-friendly,” Sophie Dao of GBS emphasized. “We’re seeing more interest from international banks looking to either enter the market or expand their operations here. GBS continues to assist global financial institutions in navigating licensing, compliance, and restructuring in Vietnam.”
With regulatory reforms, increasing digital adoption, and rising demand for sophisticated banking services, the country’s foreign-owned banks are well-positioned to thrive.
“Vietnam is not just a growth story—it’s a transformation story. And foreign banks are helping write the next chapter,” said Sophie Dao.
For more insights on foreign investment and banking regulations in Vietnam, contact GBS at www.gbs.com.vn.
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Source: Vietnam Insider